Well. I’ve gone for it!
I’ve set my first pending order on AUD/USD. This is going to be nerve-wracking.
There is an IB on the USD/JPY also, but to me it looks like it could reverse, whereas the AUD/USD looks like it’s in a good down trend.
So I hope I chose right (hope they both win obviously for you guys).
And I daren’t go for both!
Looks like it’s gone quiet for now. Might be a reversal happening right now. I’m considering to cancel my pending orders, maybe tomorrow. No new signals. Toby, any thoughts on what’s going on right now?
Pending order is hit at 23:47 on the AUD/USD.
I hope I sleep well…
AUD/USD. Stopped out 7:22. -50 pips.
The USD/JPY was stopped out also.
Doesn’t appear to working too well at the moment, does it?
I also got stopped out on the AUD/USD. Better luck next time.
Still 1,5 hours to go before the daily candle closes and I see 2 opportunities.
- NZD/USD, but the 21 SMA seems a bit flat
- GBP/JPY, the low of today matches the low of yesterday. The 21 SMA is downwards.
What do you guys think?
Kind regards,
I have placed pending orders for NZD/USD and GBP/JPY. I’m a bit early, but I’ll be at work when the new day starts (a bit of a risk I know). My broker, BTW, is GFT Australia.
Hi Pippy1975
i was looking at the same two pairs beofre i saw your post. in think as per rules
NZD/USD: although the IB looks perfect but SMA still looks flat, therefore no trade for me yet. i will however wait for another hour and see if anything changes.
GBP/JPY: todays low is 127.83 where as yesterday’s was 127.87. therefore i think its not a valid IB.
pretty much same thing has happened with EUR/JPY: downward sma, today’s low is 105.43 and yesterday’s was 105.45…
look forward to your as well as other people’s coments.
NZDUSD is looking bad. Technically it’s an inside bar but in ranging markets, IBs tend to become more common and meaningless.
GBPJPY, yesterday’s low was 127.871 while the previous day’s low was 127.861 so it’s technically an IB on my chart. I think the specific highs and lows, opens and closes etc will depend on your broker. The bad thing about this IB is that if you decide to short, you’ll be running into a support zone around 127.000-126.500. I wouldn’t short this, IMO.
Hi Kingkaivar,
thanks for the insight …I am demo trading with tadawul and its daily bar closed approx an hour ago. may i know what broker you use so i could compare how frequent the difference occurs between the close prices.
thanks
thanks mate
Hi rupeetrader,
You were right about the GBP/JPY, but the difference was so close that, at first, it looked like the same low.
I didn’t take either one of the opportunities. I will wait for a better chance.
Kind regards,
Hi KingKaivar,
Thanks for the extra insight about the support zone. How do you feel about placing a short below the support zone, so it would be a breakout of that level?
Kind regards,
Hi buddy…i m living in AUS as well…hows GO MARKETS performance? Can you still make a trade while big eco news come up? I heard from one of mates said a few brokers are extremely laggy…Have you ever used any AUS brokers?
I’ve only used Go Markets so far. I’ve noticed it can get very laggy during and shortly after the NY close. I’m not sure why but my guess is that all the daily timeframe traders are placing orders at the same time lol. One time it took me 20 minutes just to place a pending order. But normally it’s okay. I haven’t traded during news time so can’t provide feedback there sorry.
Yeah, I think this is the perfect spot to trade an inside bar as a continuation signal. If the inside bar forms just beyond support, not only do you have lots of space for price to move into and profit from, but previous support turns into resistance too so your SL is less likely to be hit.
I know this isn’t part of toby’s system, but I also trade IBs as reversal signals. If price is strongly moving down and an inside bar forms BEFORE a support level, that tells you buyers are moving in and the market is at a deciding point. It’s not the highest probability setup, but you can usually find very good R:R to justify the trade.
Hi KingKaivar,
I’m aware of the reverse possibility with an inside bar (which happens allot), but I never traded it as such. I would like to try the following on a demo account:
As soon as an IB is there on the daily chart, place 2 orders 1 above and 1 below the IB. You can make it an OCO order to be on the save side. And perhaps the SL/TP should be different, perhaps you can share your experience with trading an IB as reversal.
Kind regards,
I performed a backtest awhile back, trading against the trend. The backtest was “dumb” in that I paid no regard to support/resistance, the size of the IB or its position relative to the previous bar, etc. Basically anything that looked like an IB was traded. Two currencies were tested. I used a 21 EMA to measure the trend. SL was placed at the opposite end of the IB.
EURUSD (2001-mid 2009)
Trades: 130
Average return % at 1:1 R:R = 3.08%
Average return % at 1:2 R:R = 20%
Average return % at 1:3 R:R = 29.23%
Average return % at 1:4 R:R = 15.38%
USDJPY (2001-2008)
Trades = 182
Average return % at 1:1 R:R = 9.89%
Average return % at 1:2 R:R = 13.74%
Average return % at 1:3 R:R = 16.48%
Average return % at 1:4 R:R = 29.12%
Remember that these results were from “dumb” mechanical trading. If you filter your trades by paying attention to resistance/support and other factors, I’m sure you can improve these figures substantially.
Here’s an example of a setup that I’m waiting to be triggered. An IB just formed below resistance on XAUUSD (gold). I decided to split my pending short into two orders, with TP at two different support levels that I identified. 
Sorry for hijacking your thread, toby. IBs can be traded in different ways.